Section 73 of 2013Acceptance Of Deposits

“Deposit” includes any receipt of money:

a) by way of deposit or

b) loan or

c) in any other form

Deposit meaning

Any amount received from:-

Central or State Govt. or local authority or statutory authority

Foreign Gov/banks/FI/collaborators/bodies corporate /citizens subject FEMA 1999.

Deposit does not includes

As a loan or facility or financial assistance from any bank or banking company

Against issue of commercial paper

By a company from any other company which is not related one.

Deposit does not includes………

Share application money or advance towards allotment of securities pending allotment upto 60 days.

Director of company

Issue of bonds or secured debentures

Deposit does not includes………

Security deposit from an employee of company in the nature of non-interest bearing.

Any non-interest bearing amount received or held in trust;

Deposit does not includes………

In the course of, or for the purposes of business of the company,-

a) As advance for supply of goods or servicesb) Advance in connection with consideration

for property under an agreement or arrangement

c) Security deposit for performance of contract for supply of goods or services

d) Advance under long term projects for supply of capital goods.

Deposit does not includes………

Any amount brought in by promoters of company or their relatives or both by way of unsecured loan in pursuance of the stipulation of any lending FI or a bank and exemption shall be available only till said loans are repaid and not thereafter;

Any amount accepted by a Nidhi company

Deposit does not includes………

Private Company

Public Company

Who can Accept Deposits from members

Banking Company

NBFC

Housing Finance Company

Non Applicability

Accept/renew deposits – repayable after 6 months and up to 36 months.

Ordinary Resolution if permission taken u/s 180(1) (c)

Special Resolution in other cases

Pre Requisit

Accept/renew deposits – repayable after 3 months and up to 6 months.

subject to: such deposits shall not exceed 10% of aggregate of paid up share capital and free reserves

Pre Requisit…..

25% of the aggregate of paid-up share capital and free reserves.

ROI: not exceeding maximum ROI prescribed by RBI for acceptance of deposits by NBFC, Presently its 12.50% p.a.

Penal ROI :18% p.a. for overdue period in case of deposits matured and claimed but remaining unpaid.

Max. deposit acceptance Limit:

1) Pass Board Resolution 2) Pass Resolution in General Meeting

3) File E-Form MGT-14 if applicable.

4) File copy of circular to ROC, 30 days before date of issue of circular/advertisement in Form DPT-1 - eFORM NO. GNL-2

 

Procedure to accept deposit

5) Enter into Deposit Insurance Contract 30 days before issue of circular/advertisement.

6) Issue circular after 30 days of filing with ROC, to its members by registered AD or speed post or by electronic mode in Form DPT-1

 

Procedure to accept deposit………

7) Receive Application from Depositor and accept deposit

8) To make entry in Register of Deposit and preserve it for 8 years

Procedure to accept deposit………

PUBLIC COMPANIES having -

Net worth Rs. 100 Cr or Turnover Rs. 500 Cr

Acceptance of deposits from public by certain companies

Amount of deposits together with amount of other deposits outstanding as on date of acceptance or renewal of deposits shall not exceeds 10% of the aggregate of paid-up share capital and free reserves.

Limit from Members:

Amount of deposits together with amount of other deposits outstanding as on date of acceptance or renewal of deposits shall not exceeds 25% of the aggregate of paid-up share capital and free reserves.

Limit from other than members:

Same as per Other company except following

Obtain Credit rating from recognized credit rating agency every year

Circular shall publish in English language in an English newspaper and in vernacular language in a vernacular newspaper having wide circulation in the State – DPT 1

Upload a copy of the circular on its website, if any.

Procedure

Enter into a contract for providing DI 30 days before issue of circular or advertisement or renewal.

DI contract amount, If Deposit + Int. not exceeding 20K - Full amount will be paid by Insurer.

Deposit + Int. exceeding 20K – Up to amount specified in contract which should be more than 20K.

Deposit Insurance Contract (DI)

Insurance premium – borne by company

If any default is made by company complying with terms and conditions of DI contract - either rectify default immediately or enter into a fresh contract within 30 days.

Deposit Insurance (DI)…….

In case of non-compliance - Amount of deposits covered under DI contract and interest payable thereon shall be repaid within the next 15 days and if not paid it shall pay 15% interest p.a. for the period of delay and liable to punishable under the act.

Deposit Insurance (DI)…….

To depositor/his agent a receipt for amount received by company, within 21 days from date of receipt of money/realization of cheque/date of renewal.

A receipt - shall be signed by an officer of company duly authorized by Board in this behalf and shall state date, name and address, amount, ROI and date on which deposit is repayable.

Deposit receipts to depositors.-

On/before 30th day of June, of every year, file with ROC, a return in Form DPT-3 with information contained therein as on 31st day of March of that year duly audited by the auditor of company.

Return of deposits to be filed with ROC:

After expiry of a period of 6 months but before the expiry of period for which such deposit was accepted.

ROI: reduced by 1% from rate which company would have paid.

Premature repayment of deposits:

Separate bank account with a Scheduled Bank – Deposit not less than 15% of the amount of its deposits maturing during a FY and FY next following, on/before 30th April of each year

Purpose: repayment of deposits only.

Deposit Repayment Reserve Account

Fresh circular- Each succeeding financial year, for inviting deposits during that financial year

Validity of Circular

Depositor may APPLY TO THE TRIBUNAL

TRIBUNAL may on an application made by the company allow further time

If company FAILS TO REPAY the deposit

within 30 days of such acceptance, create a charge on its assets of an amount not less than the amount of deposits accepted in favour of trustee for the depositors on: specific movable or immovable property

If Secured Deposits

Appoint trustee for depositors before issuing a circular

Obtain written consent from trustee before their appointment

Execute a deposit trust deed in Form DPT-2 at least 7 days before issuing the circular or circular in the form of advertisement.

Prerequisite for issue of secured deposit:

E-Form No. DPT-4– Statement of Existing Deposit

E-Form No. MGT-14– Special Resolution, if any.

E-Form No. DPT-1– circular along with statement

E-Form No. DPT-3– Return of Deposits

Forms to be filed with ROC